Analysis of Hofstede's Cultural Dimensions in Business Context

This report provides a critical analysis of Hofstede's cultural dimensions, examining their impact on business practices and organizational behavior. The report begins with an introduction to cultural dimensions, highlighting their significance in both national and workplace contexts. It then delves into the five key dimensions: power distance, uncertainty avoidance, individualism vs. collectivism, masculinity vs. femininity, and indulgence vs. restraint. The analysis uses the United States, Mexico, and various Asian countries as examples to illustrate these dimensions. The report also explores the role of organizational values and how they are affected by cultural differences, with examples from companies like KFC and Subway. The conclusion emphasizes the importance of understanding cultural dimensions for business success and the need for companies to adapt their strategies to different cultural contexts.

Individual Project

Table of Contents
INTRODUCTION...........................................................................................................................3
Critical analysis ...............................................................................................................................3
CONCLUSION................................................................................................................................7
REFRENCES...................................................................................................................................8

INTRODUCTION
Cultural is an important aspects of every nation or even workplace. Also, it has led entity
to work with defined rules and norms which are link with defined goals and targets. Along with
this, role of organisational values is important to raised the longer suitability of cultural of any
business organisation to work towards their defined rules and objectives of an organisation
(Jespersen and et. al., 2016). This assessment will be cover Hofstede cultural dimension's which
includes five different types of cultural dimension's. This essay will do critical analysis of case
study given and application of Hofstede cultural dimension on this above.
Critical analysis
Culture is the real world which has played various necessary role to influence different
people or business environment. It has huge impact on changing people thinking as well as their
pattern of how react or persist other things. In the real world context, there are four dimensions
identified: individualism/collectivism, power distance, uncertainty avoidance and masculinity.
Where individualism is a type of culture which actually refers how self-oriented member's of a
culture in their behaviour. In this culture, person is self-controlled and have capabilities to handle
, power distance refers to the power inequality among the different person's or business entity.
Mainly these two cultural dimension are most commonly followed in business organisation and
also different countries (Jennie, 2016).
Mainly USA follows individualism cultural where an individual is free to take their
separate decision making and empowers to manage themselves. But, these cannot be possible in
business entity, there's requires group of person's to regulate in. Cultural dimensions can be best
explained through Hofstede cultural dimension. It is the comprehensive studies of how values in
the workplace are influenced by culture. Here, culture means any religion, impact of particular
caste, habits etc., on business environment or an individual people.
Hofstede work serves as the base for other researchers in cross-cultural psychology,
inviting a number of researcher's to study different aspects of an international business and also
the communication. This is the locus significance of Hofstede cultural dimension. In the given
situations, it is clearly said that culture has five different elements named as values, rituals,
beliefs, symbols and thought dimensions. This theory of cultural dimension's has five dimension
s such as: power distance, uncertainty avoidance, individualism vs collectivism, masculinity vs

femininity and indulgence vs restraint. On one hand, United states is the suitable example of
individualistic culture, where every person is potential to look at themselves or they are free to
take care of their own. While, on the other hand, Mexico and different Asia follows collectivism
culture in their work or people regulations. The major difference here is about choice for being
adaptable to any of these changes. Even outcomes can be similar or flux depends on adaptability
to changes (Ugazio and Salamino, 2016) In context with organisation, it was noticed that
organisation values are least exists in individualistic culture, because one person cannot follow
other guidance or pre-made rules or values in order to counterpart its own. But, these people are
more successful than other's, as a reason of their separate values and in collectivism. It was saw
that organisational values are used to change on frequent basis, because of in collective
composition of people, different people's have their own views and opinion to follow.
In power distance dimension's, which refers to the power inequality between superior and
subordinates. In that case, organisation values differs which is the simple why power inequality
happens. Dimension of power distance mainly used here which explains extent to which people
who are less powerful in a society and take place of power into the society unequally. If power
influence happens into the business, hierarchical takes place and also which is the major reason
conflicts or issues takes place in a workplace (Lukina, 2016). This long dimension's of
individualistic versus collectivism has influenced purchasing of clothing, a smart-phone or iPad
etc. This is because, these organisation are influenced by individualism phase, where one person
starts with one idea and then take collectivism of people to take's idea and implement it to bigger
level. Here, in this role of organisational values is higher which has led building of the team
culture to accomplish desired goals and targets of the companies. In clear response, collectivism
has led to sharing of views and idea's and enhancing the suitability for organisational values.

Sources: Hofstede cultural dimension, 2018
Organisation's like KFC, Subway etc., are successful in most of the countries, even in the
Arab world, where power and cultural is under controlled. The major reason is the diversity in
business culture as well as led people to think as per their own wish (Rahmani and et. al 2015).
Freedom is express their own opinion & views are still their, in response these companies has
been adopted these cultures to running operation for longer period of time. Also, where values
has been changed business sustainability and giving importance to defined norms & regulations
of similar location. Also other reasons like doing extensive research over the cultural influences
in an Arab world, what are the major regulations into it and also what are pin-point of people in
the Arabs. Also, one major reason is the non-prohibition on usage of food.
Uncertainty avoidance refers to how member's of the society responds to uncertainty or
ambiguity. Nations with high on uncertainty avoidance is used to avoid risk taking, which is the
why organisation values are not working properly their and why many of big business enterprises
are not working properly. Subway, KFC etc., are not completely successful in Great Britain in
comparison to Arab world. The reason is that nation with low uncertainty avoidance has led
firms to take risk taking with support behind and also led to organise self business values, but
under control of the some. High uncertainty avoidance culture's have more even uncleared rules
Illustration 1: Hofstede cultural dimension

in the workplace, which has deviated person from accepted standards. This is major reason, hi
there is not co-operation of organisation and its employee's in the common working and which
has led to stay away from success of business firms.
There is completely agreeableness, that organisational values must be highly visible and
link towards the defined posture of the workplace. These values are required to be demonstrated
by manager's to accomplish defined goals and targets of business organisation. It was noticed
that values are generally made by top level manager's which is the main reason why there is less
relationship or communication among different hierarchical stages of business firm. It is clear
agreeing that values should be made leader, who has complete knowledge of organisation know
how and which has ability to positively influences culture of the workplace.
There are various valuable which needs to made like giving to structured values is must
in workplace to avoid any cause of individualistic vs collectivism, power distance along with
uncertainty avoidance. Values needs to be develop by business in their own with its right and
suitable values and should be in accordance with national culture or environment.

CONCLUSION
From the above assessment, it has been concluded that cultural dimension has led growth
and diverse cultural in business organisation along with its productive and suitable results or
outcomes. Also, it has been concluded that being character of individual is necessary to hold idea
generation for success of any company as well as enables behavioural culture into business entity
to get results over the values and norms of business organisation.

REFRENCES
Books & Journals
Jespersen, and et. al 2016. Measurement of food safety culture using survey and maturity
profiling tools. Food Control. 66. pp.174-182.
Kennie, T., 2016. ACADEMIC LEADERSHIP: DIMENTIONS, DYSFUNCTIONS AND
DYNAMICS. International Scientific Journal of Universities and Leadership. (2).
Lukina, N. P., Slobodskaia, A. V. and Zilberman, N. N., 2016. Social dimensions of labour
robotisation in post-industrial society: Issues and solutions.
Rahman, and et. al 2015. Organizational culture and the organizational commitment; Correlation
study in hospital staffs. Asian Social Science.11(5). p.143.
Gazillion, V. and Salami, F., 2016. SHADES OF COURAGE. EMOTIONAL DIMENTIONS
OF COURAGE IN THE FAMILY SEMANTIC POLARITIES MODEL. PM: Testing,
Psychometrics, Methodology in Applied Psychology.23(2).
Online
Hofstede Classification Scheme, 2018. [Online]. Available through:
<https://smallbusiness.chron.com/apply-hofstedes-classification-scheme-global-
marketing-context-75008.html>